sts7049 said:

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BT1395 said:

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Too late to get in on SN?

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i hope not, I'm holding on until 6 bucks or so

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That's what I'm thinking too.

cgh1999 said:

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That top resistance is strong.

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When she blows it will be glorious. $4.71 premarket. Another attempt premarket. I grabbed some of those cheap calls looking for this to finally break through.

CHK up 58% in 4 months since posted accumulation strategy. Look at her on afterburn. Selling 50% into this $4.45 spike.

It's PAYDAY!

Anyone have thoughts on JD, China's version of Amazon?

JD and SQ. Own them both and see who wins

SWN $4.72 Challenging the cap

Volume spike at $4.75 SWN sends it down a little. That is what we've been looking for.....the battle is on!

Couldn't you just sell calls against the holding instead of selling the actual holding?

I'd hate to sell 50% and miss out on a continued rally

AggiePeeps06 said:

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Couldn't you just sell calls against the holding instead of selling the actual holding?

I'd hate to sell 50% and miss out on a continued rally

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Depends on the number of shares you planned to carry longer term. If you have 300 shares then you wouldn't do a thing. If you owned 10k shares you might sell a covered call against 25%-50% of your holdings. When you accumulated 145k shares with a goal of holding 50k longer term you do any of the above, including straight selling, up to 95k shares.

Amat just destroying the chip stocks

271.1 looks like a good place to bounce. (the triangle, previous support, and daily pivot point support)

Break below that will be pretty significant if it happens IMO.

oldarmy1 said:

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AggiePeeps06 said:

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Couldn't you just sell calls against the holding instead of selling the actual holding?

I'd hate to sell 50% and miss out on a continued rally

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Depends on the number of shares you planned to carry longer term. If you have 300 shares then you wouldn't do a thing. If you owned 10k shares you might sell a covered call against 25%-50% of your holdings. When you accumulated 145k shares with a goal of holding 50k longer term you do any of the above, including straight selling, up to 95k shares.

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What would be your strategy on LEAP calls? I started trading options in February, so still pretty new. I've mainly bought only weeklies or a couple weeks out so far. My basic strategy for exiting is to sell 50% at a double + commission in order to take all risk off. The tricky thing for me is determining my sells for the other half of the positions. I've caught some big runners in recent weeks (baba, aapl, bidu, chk), but have had a tendency to sell a little early.

Here's an example with CHK: last month - I made a small bet 100 contracts $4 strike 7/20 expiration .10 premium when the stock was trading around $3. Earlier this week I sold 50 contracts at .24, I sold another 20 contracts at .53, so now I have 30 contracts remaining. Even if these expire worthless I'll net $1k gain off the trade. Of course I'm sitting here kicking myself now for selling the first half so soon, as I missed out on ~$2k on the spike to .7 this morning.

FriscoKid said:

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271.1 looks like a good place to bounce. (the triangle, previous support, and daily pivot point support)

Break below that will be pretty significant if it happens IMO.

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I think we broke through, and I think this bounce is going to be short lived. Next target 270.0

It might have been oldarmy that said at one point never kick yourself for taking profits. Had you held on to it trying to make the perfect trade and it tanked, you'd be kicking yourself harder and little lighter in the pocket. Sounds like the right decisions to me.

yeah I wouldn't be too upset on taking profits early. Especially in this current market condition. I've had the opposite problem this week, thinking my winners were going to continue to run. For example, I got in Chipotle May 25 calls early in the week expecting a breakout. It did, in fact, breakout and deciding it was going to continue to run over the week. It didn't, instead it creeped back down to breakout levels and I'm losing on these calls now when I had previously made +200%-300%.

If it were 2017 I think you could be more critical. Things have changed in 2018. This market this week has sucked.

Rules of options, sell your winners. Let your losers ride.

Edited to add I originally didn't see where China had agreed to open up their markets to US goods but they have.

Great news for US stock markets!

pfo said:

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WSJ just announced China and the Trump administration could not reach an agreement to reduce China's trade surplus with America. So that's not good news for markets.

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http://money.cnn.com/2018/05/19/news/china-united-states-trade-announcement/index.html?utm_medium=social&utm_content=2018-05-19T21:15:06&utm_term=image&utm_source=twCNN

Expect all those options being held to go on a tear Monday.

Micron raises guidances

Can SWN finish above $4.66?!?

cgh1999 said:

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Can SWN finish above $4.66?!?

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The bigger issue is that it is formed a Harami pattern if it doesn't press to touch a new high from Friday. It has ranged above Fridays low but below Fridays high. That is never ideal. Doesn't mean 100% it will reverse back down but if we are approaching close and it hasn't punched to beat Friday's highs I will be selling $4.50 covered calls on a %.

I just sold my SWN at 4.70 as I was content with my small profits and it didn't look like it wanted to move much more. Of course I'm playing with peanuts compared to pretty much everyone else on this thread.

jakal0722 said:

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I just sold my SWN at 4.70 as I was content with my small profits and it didn't look like it wanted to move much more. Of course I'm playing with peanuts compared to pretty much everyone else on this thread.

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Do you have option trading capability. Say you made $500 on the trade. You can turn around and leverage 1000 shares for $60 and if it breaks through that $60 will pay $300. If not your net total will be $440 and you'll be able to write off the $60 loss against cap gains.

CHK is on a climb!

COP working towards another short term resistance break. June 15th $72.50 are of interest.

I do have option trade capability but I haven't had the chance to learn options enough to feel comfortable doing so yet. I will get involved in options in time.

jakal0722 said:

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I do have option trade capability but I haven't had the chance to learn options enough to feel comfortable doing so yet. I will get involved in options in time.

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Smart. If you are on something like Robinhood where you can trade options for free buy a single option just to get real exposure to how they work. Something I would have never said before is now common place with free trades.

Buy 1 SWN $5 Strike Call for $6. That is 100 shares leveraged. Let's say SWN does an SN or CHK breakout run up to $5.50+. That $6 option is gonna move to $55+.

As long as you sell before the strike date, you will not have to purchase those options correct? Also, are options taxed in the same way as normal stocks?

jakal0722 said:

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As long as you sell before the strike date, you will not have to purchase those options correct?

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You don't have to purchase them regardless. Option means the right to buy, not obligation. They either expire worthless if below $5. You sell them before expiration at whatever the price they are trading at OR you have the option to "call" the shares out at $5.00 per share, therefore pay $500 for the 100 shares.

Also, I know we talk about trading which involves buy and sells most of the time but if smaller positions I would prefer to see people hold onto stocks clearly with a bottom set and with a sector on the rise hold onto the shares. If you are concerned of it going through another cycle down then with the free options you could buy a $4.50 Put expiring May 25th for $3 on every 100 shares. That is some darn cheap insurance that lets you hold onto the shares to see if we bust through for the big payoff.

SWN closing here would be a strong chart for tomorrow. Why? A) It would be a close above the main resistance point and B) It is a new closing high on trend.

Ok. That makes a bit more sense. As I said, new to this but it has definitely given me something to stay busy while I'm a stay at home.

SWN - Feel like we're watching the pot on the stove with the constant commentary but since its one of the 3 posted stocks I know everyone is watching it. Biggest observation besides the obvious new trend high above resistance close - for the 1st time - is where in the heck is the volume?! Lowest volume trading day since 2013 - and its not even close. So what does that mean? I have no clue. No sellers but not many buyers? That has to change if we're gonna see a moonshot run up.

The new closing high will show up on traders filters so its natural that there is some nibbling on the after hours ask. $4.75 currently, a whopping 2 cents above the $4.73 close.

I think the volume on your chart is wrong.

OA1, thank you... I'm loving CHK, SN, and SWN. Especially CHK.